Crude Oil prices rallied and hovered near $110. Another move higher could easily happen if either sanctions or some sort of Russia-Ukraine war-related event reduces shipments, strategists at TD Securities report.

Oil price at $110 or higher may not be sustainable long-term

“Any additional sanctions or unanticipated supply interruption could easily see prices surge still higher in the near-term, as this would augment the already significant concern of a large deficit, and there are few alternatives. Under these conditions, it would not be surprising to see key benchmark crudes jump to around $145.”

“The redirection of crude flows, larger OPEC production quotas, more US shale output and demand destruction could force prices back to below the $100 longer-term. Certainly, an eventual easing of geopolitical tensions in Europe would do the job to rebalance the market too.”